Friday, August 3, 2018

California Home Price Fundamentals

Check out this interactive
map of the “Home Price Fundamentals” for California, and individual Counties.

The interactive tool is provided by the California
Association of Realtors (CAR)

Some of these graphs are most interesting, like the one
called “Years of Savings Required for Down payment”, which is now close to 20.The one called
“Price to Income Ratio” shows that it takes about 8.3 years of
paychecks to purchase the median priced home in California right now.

If you look at the County of Santa Clara though, the figures
are staggering: it takes over 11 years of salary to afford the median priced
home, and it takes over 26 years of savings (at 6% of savings rate) to afford
the typical 20% down payment.

It also shows that in California, if you are in the median, it takes about 59% of the
yearly income to pay for your mortgage...